Homeowners insurance protects you from financial ruin in the event a major disaster happens. You may also be required by a lender to carry homeowners insurance if you’re paying on a mortgage. Receiving the news that your policy has been cancelled is disheartening, but there are some things you can do to get it reinstated and protect yourself from financial harm during this time.
Know Your Rights
In most states, insurance companies must comply with laws and regulations that protect policyholders from rash decisions. For instance, California insurance companies must notify policyholders in writing within 45 days of cancellation or nonrenewal. If they fail to do so, they could be required to keep the policy active until 45 days after they actually send the notice. In most cases, you can expect an insurance company to follow the regulations, but it’s worth checking into if your insurance cancellation seems too rushed.
Find Out Why Your Insurance Was Cancelled
There are many reasons your policy may be cancelled. The most obvious one is not paying your premiums. As with any other type of service, an insurance company isn’t obligated to maintain your coverage when you aren’t compensating them for their services.
Your insurance could also be cancelled due to a failed inspection. This may happen if your home is older or has a bad roof, since this impacts the entire property. Your policy may also be rejected for renewal if you’ve filed too many claims or have poor credit. Finding out what happened gives you a starting point for fixing the issue.
Check to See if a Repair Could Get Your Policy Reinstated
The majority of the time, an insurance company would prefer to keep you as a customer. Homeowners often bundle multiple policies together, which means your insurance company doesn’t want to lose your business. For this reason, insurance providers tend to reinstate policies once the issues are corrected. For example, you may simply need to pay your premium in advance or get caught up on your payments. Or you might need to get your roof repaired or have other parts of your house fixed. This could not only result in getting your policy reinstated, but it might also lead to lower rates, since your house will no longer be deemed such a high risk.
Explore Plans for High-Risk Homeowner
In some cases, you might still be considered a high risk no matter what you do. This is common for homeowners who have homes in areas that have a high risk of natural disasters, such as wildfires or flooding. If your home is in a high-risk area, you may be eligible for a special type of insurance plan meant to make coverage available to everyone. These plans may come with higher rates than average policies, but being covered is worth it if or when a disaster happens.
Following the tips above can help you if you’re ever in the unpleasant position of having your homeowners insurance cancelled. For reliable, affordable homeowners insurance, San Diego homeowners know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and auto insurance Chula Vista. Request a free quote by calling one of our friendly agents today at (800) 719-9972.